Affordability Calculator

Calc Affordability

Yearly Income

$.00

Monthly Debt

$Mo

Monthly debts (credit cards, loans, etc.)

Down Payment

$.00

Interest

Loan Term

Years

Mortgage Amount

Purchase Budget

Taxes, Fees and Financial

Download this Calculation

If you are human, leave this field blank.

Clicking the submit button will allow you to download a pdf of your calculations

Notes

Front-End Ratio: 28%. This means your monthly housing expenses, including your mortgage payment, property taxes, homeowner’s insurance, and PMI (if applicable), should not exceed this percentage.

Back-End Ratio: 36%. This means your total monthly debt payments, including housing expenses and other debts like car loans and credit card payments, should not exceed this percentage. This is the amount used on this form to calculate affordability.

Down Payment

Enter the down payment you plan to contribute toward the purchase of your home. If your down payment is less than 20%, you may be required to pay mortgage insurance.

Frequently Asked Questions

Here are some of the most frequently asked questions about home affordability and why it matters.

How is Your Mortgage Interest Rate Determined

The foundation of home affordability hinges on your mortgage interest rate. When evaluating your ability to afford a home, it’s crucial to consider the estimated interest rate associated with your mortgage.

Your debt-to-income ratio.
Your track record of timely bill payments.
Verification of a stable income source.
The extent of your down payment, along with additional reserves for closing expenses and other costs associated with relocating to a new residence.

Once lenders ascertain your qualification for a mortgage, they proceed to determine the interest rate applicable to your loan. Your credit score plays a significant role in shaping the mortgage rate you’ll receive.

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

What is home affordability?

This question seeks to understand the concept of home affordability and how it is determined.

What is a debt-to-income ratio and CALCULATE IT

This question aims to clarify the significance of the debt-to-income ratio in the home affordability equation.

Please select a valid form

What role does my credit score play in determining my home affordability?

Understanding how credit scores affect the mortgage interest rate and, consequently, home affordability is a common concern.

How do lenders assess my eligibility for a mortgage?

People often want to know the criteria and process that lenders use to evaluate whether they qualify for a mortgage.

Are there any government programs or incentives to help with home affordability?

This question is relevant for individuals seeking information on available programs or assistance for homebuyers.

What is the ideal percentage of my income to allocate to housing costs?

Homebuyers may inquire about recommended guidelines for the portion of their income that should go towards housing expenses.

How can I improve my home affordability?

This question focuses on strategies and tips for making homeownership more affordable, such as improving credit scores or saving for a larger down payment.

What is the relationship between interest rates and monthly mortgage payments?

This question delves into how changes in interest rates can impact the monthly cost of a mortgage and, consequently, home affordability.

Should I consider adjustable-rate mortgages (ARMs) for greater affordability?

Prospective homebuyers may want to know about the advantages and disadvantages of adjustable-rate mortgages compared to fixed-rate mortgages in terms of affordability.

What are the common pitfalls to avoid when assessing home affordability?

This question addresses potential mistakes or misconceptions that individuals should be aware of when determining their home affordability.

Is it better to rent or buy a home in terms of affordability?

Some people may be unsure whether renting or buying is the more cost-effective option, and this question explores the factors to consider.

How do property taxes and insurance affect home affordability?

Homebuyers may inquire about the impact of property taxes and homeowners insurance on their overall housing costs.

Can I refinance my mortgage to improve affordability?

This question examines the possibility of refinancing as a strategy to make homeownership more affordable, especially when interest rates change.

Disclaimer

In order to receive a helpful estimate, it’s important that you input accurate information.

Results in no way indicate approval or financing of a mortgage loan. Contact a mortgage lender to understand your personalized financing options.

Helpful Need To Knows about Mortgages

Florida Mortgage Rates

30 Year Fixed

15 Year Fixed

5/1 ARM

View Trend

Source: Mortgage Rates

Understanding the Costs Involved in Buying a Home: Simplified

by MIke Chadwick | January 11, 2024 | Buying | 0 Comments

Are you ready to take the plunge into homeownership? Buying your first home is an exciting milestone but also a big financial commitment. It's not just about the mortgage payments - various other costs are involved in buying a home. Here, we will explain the financial...

Your Complete House Selling Checklist for 2024

by MIke Chadwick | January 7, 2024 | Checklist Articles, Selling | 0 Comments

Welcome to Property.com's comprehensive Home Selling Checklist designed to easily guide you through each step of the home selling process, from readying your home to closing the sale! Whether you're a first-time seller or a seasoned one, this checklist is for you. As...

10 Tips for Stress-Free Moving with Pets

by MIke Chadwick | August 19, 2023 | Checklist Articles, Living, Moving | 0 Comments

Pets can become stressed during a move due to changes in their environment and routines. Moving homes is exciting, but for our beloved pets, it can also be a time of stress and confusion. To make the transition as smooth and comfortable as possible to maintain their...

First-Time Home Buyer Loans and Grants for 2024

by MIke Chadwick | June 11, 2024 | Buying, Learn About Financing | 0 Comments

Do you want to become a homeowner in 2024 but are unsure of the best loans and grants available to you? You're in luck! Here, you'll find a wide range of financial alternatives that extend well beyond conventional loans. Our user-friendly guide on first-time home...

Mortgage Shopping Made Easy: A Starter Guide for Finding Your Perfect Loan

by MIke Chadwick | June 27, 2024 | Buying, Learn About Financing | 0 Comments

Hello, future homeowners! Are you lost in the labyrinth of mortgage rates and home loans? No worries – we're here to lend a hand. Think of this as "Home Mortgages 101," your beginner's guide to understanding the basics of mortgages - the various types and the terms...

18 Home Staging Hacks

by MIke Chadwick | October 20, 2023 | Selling | 0 Comments

Transforming Your Space to Sell Selling your home is a significant endeavor, and creating the right first impression is crucial to attract potential buyers. Home staging, the art of enhancing your property's visual appeal, can make a world of difference in the real...

Don’t Get Taxed Out: Know the Taxes When Selling A House

by MIke Chadwick | May 30, 2024 | Selling | 0 Comments

Hey there, homeowners! Thinking about selling your home? We bet you've thought about staging, listing, and closing costs. But have you considered the tax implications? Yep, we're talking about capital gains tax, transfer tax, property tax—the works. It might sound...

How to Get a Home Improvement Loan with Bad Credit

by MIke Chadwick | July 9, 2024 | Finance, Home Improvement | 0 Comments

Got bad credit but big renovation dreams? We’ll show you how to get a home improvement loan with bad credit. We’ve got your back!

Rental Property Investing in 2025

by MIke Chadwick | February 17, 2025 | Property | 0 Comments

Thinking about rental property investing in 2025? You're making a smart move! Despite recent market changes, investing in rental properties remains one of the most reliable ways to build long-term wealth. Let's explore why this year could be your perfect time to...

Downloadable Checklists and Learning Links

by MIke Chadwick | June 18, 2024 | Buying, Downloads, Finance, Home Improvement, Learning, Selling, Tools | 0 Comments

Real Estate Checklists Welcome to our Real Estate Checklists and Learning Links page, your go-to resource for comprehensive guidance and educational materials on all aspects of real estate. Whether you are buying, selling, investing, or simply looking to expand your...

Demystifying Mortgage Interest Rates

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

Keep in mind that mortgage terms and conditions can vary, so it’s crucial to work closely with a qualified mortgage professional to tailor your mortgage to your unique financial situation and homeownership goals

The frequently asked questions here, provide valuable information for individuals looking to understand and navigate the complexities of home affordability.